Financial institutions keep revising the terms of their home loan plans over time. Now, if you have already taken a home loan a few years back, it is possible to come across current loan plans that have much better terms. This does not mean that you have missed out on a better loan plan. There are many home loan borrowers who find better plans and then choose to refinance their current home loans. If a lender is offering a better home loan plan, a borrower can always choose to transfer their home loan to that lender to enjoy better terms, which is called a home loan balance transfer.
However, before going ahead with this transfer, it is very important to make sure that the new terms would ease the loan’s repayment. This is why it is advisable to use a home loan balance transfer calculator. For those who have not heard of this calculator, here’s how it can prove to be an essential tool for borrowers looking to transfer their home loans:
- A home loan balance transfer calculator displays the revised EMI payments
Some borrowers are in situations where they face difficulty in clearing their home loans. In such cases, one effective solution is to transfer their home loan to a lender that helps in offering a better repayment plan. A home loan balance transfer calculator will display the revised EMI payments, based on which the borrower can decide whether the new terms are helping ease the EMI payments.
- It shows how the revised interest rate helps ease loan repayment
One of the most common reasons that borrowers transfer their home loans is to get a lower home loan balance transfer interest rate. Now, it is important to be aware of how the new interest rate would affect the EMIs of the home loan. This is where using a home loan refinance calculator can help. The calculator will display the new EMIs based on the revised interest rate, and you can then decide whether to transfer your home loan to the new lender.
- It lets the user know the potential savings they can make after transferring their home loan
The ultimate goal of any home loan borrower is to save money on the overall cost of the loan. A home loan balance transfer calculator even displays the potential savings that a borrower can end up with by transferring their home loan to a new financial institution. This is another reason why it is so essential to make use of this calculator. After learning about the amount that can be saved, it becomes easier to make a decision on refinancing the home loan.
Thus, this is why it is so important to use a home loan balance transfer calculator. The best part is that most financial institutions make this calculator available on their websites. Anyone can freely use the calculator without any restrictions. After using the calculator, you can then decide whether to transfer your home loan or not.